Start with the business structure and activity. The sales channel is only one part of the setup.
Choose the structure before the platform
Decide whether the business will operate as an individual/sole trader, partnership or company. That decision affects registration, ownership, tax administration and ongoing filings.
Do not let the fact that sales happen online delay the structure decision.
Register the business name or incorporate the company
Use CROS to reserve the name and complete the appropriate registration or incorporation process.
Make sure the registered business activity describes what the business actually sells or does.
Prepare banking and payment processing
Online businesses often need a business bank account, card-processing facility, payment link or e-commerce gateway. Providers can request registration, tax, address and ownership documents.
Build those requirements into the launch timeline.
Handle tax and VAT based on the business, not the website
Registration and tax obligations depend on the business and its turnover, not whether the sale happened online. IRD currently publishes a VAT-registration threshold of TT$600,000 in commercial supplies over the relevant 12-month period.
Check current tax requirements as the business grows.
Make the website or social store match the registered identity
Customers should be able to see who they are dealing with, how to contact the business and the terms that apply to orders.
Keep the public business name and contact information consistent with the records used for banking and payments.
Questions people ask
Can I run an online business as a sole trader?
Yes, if that structure fits the business. The usual registration and tax considerations still apply.
Does selling through social media mean I do not need registration?
No. The sales channel does not remove the underlying business-registration question.
When might VAT registration apply?
IRD currently states that persons making commercial supplies of TT$600,000 or more in the relevant 12-month period, or expected to exceed it, must apply for VAT registration.
References
Current official pages related to this guide.